Video KYC is a new way of customer authentication. It is a beneficial mode for the people as it allows the customer to complete the KYC for their accounts within few minutes. The process involves a video call with the bank officer and over the video call itself the KYC documents of the customers are verified and signatures are being recorded.
The global video KYC market is currently boosted by the Covid-19 pandemic situation as there is a growing demand for virtual tools from the financial institutions to avoid mass gathering in the branch offices and for the safety of the employees as well as their customers. Further, KYC has become an integral part of the customer onboarding process for NBFC, mutual fund platforms, all the banks, and other financial organizations and institutions. Nowadays in the digital world, clients and customers seek convenience. In such cases, video KYC offers several benefits such as no need to meet branch officials or visit the branch office, instant and paperless online completion of KYC, remote customer onboarding, enhanced customer experience, and up to 40% savings on KYC completion cost with fewer staff and infrastructure requirements. All such factors are propelling the growth of the global market. In addition to this, the growing need to increase profit margins and enhance investments is also fostering the growth of the market. Furthermore, the growing focus and investment of BFSI & other financial institutes to develop data-driven and digital-based technologies will have ample opportunities for the growth of the global market during the forecast period.
The global video KYC market is categorized based on offering, deployment mode, end-user, and region. Based on the offering, the global video KYC market is fragmented based on services and software. The deployment mode segment comprises on-premise and cloud. Based on the end-user, the global market is bifurcated into banks, e-payment service providers, insurance companies, government entities, telecom companies, and financial institutions.
During the forecast period, the global video KYC market is anticipated to be dominated by Asia Pacific region. Factors such as an increase in adoption of digital technology by both private & public financial institutions, rise in the number of Generation Y and millennial who prefer video KYC for completion of their KYC are fueling the market growth in this region. North America is expected to contribute to a significant share in the market due to the adoption of high technology at a rapid rate.
The key participants operating in the global video KYC market are HyperVerge, Inc., SignDesk, Ameyo, Signicat, Wibmo Inc., Signzy Technologies Private Limited, Pegasystems Inc., Onfido, Shufti Pro, GIEOM Business Solutions, and FRSLABS.
Key Developments
In October 2020, for the global rollout of video KYC, Mastercard announced a partnership with Signzy Technologies Private Limited. This will enable Mastercard to offer a secure onboarding, remote, and completely paperless solution for its end-users.